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Future of Data Centers in India

Ctrl S Datacenters Ltd.


PS Reddy, CMD
Structure
CtrlS
• Present Situation
• Market Sizes
• Future Trends
• Implications of these Trends
• Customer Requirements
• Challenges
– IDCs
– DR
• Snapshot of the Future
• Ctrl S: Future Ready
Present Situation
CtrlS
• ~ 6,00,000 of third party IDC space
• 6 providers
• Largely Tier II and Tier III, no Tier IV
• Telco dominated, driven by bandwidth
costs
• Only primary data centers, not many
secondary or Disaster Recovery data
centers
• Most DR plans end with a tape backup
Present Situation
CtrlS
• Many user companies – esp. in the IT
sector – feel they know better than
outsourced service providers
• Mostly office buildings converted to data
centers
• Supply side problems
– No second source of power
– Stand alone buildings very costly
Market Sizes
CtrlS

CAGR
GEO-
GRAPHY
2006 2007 2008 2009 2010 2011 2012 2007-
2012
India 662 806 983 1,200 1,467 1,795 2,199 22.2%

Asia 8,135 8,905 9,812 10,887 12,168 13,705 15,558 12.9%

World 45,394 47,602 50,052 52,788 55,861 59,336 63,291 5.9%

SOURCE : DATA MONITOR ALL FIGURES IN $ MILLION


Market Sizes
CtrlS
India 2006 2007 2008 2009 2010 2011 2012

As % of Asia 8% 9% 10% 11% 12% 13% 14%

As % of World 1% 2% 2% 2% 3% 3% 3%

Asia 2006 2007 2008 2009 2010 2011 2012

As % of world 18% 19% 20% 21% 22% 23% 25%

SOURCE : DATA MONITOR


CONTRIBUTION - DIFFERENT VERTICALS
CtrlS
Geography India World
VERTICALS 2006 2012 2006 2012
Financial Services 28% 33% 23% 24%
Manufacturing 25% 24% 21% 22%
Public Sector 11% 9% 15% 15%
Telecommunications 9% 11% 9% 10%
Retail, Wholesale and Distribution 8% 6% 10% 9%
Travel, Transportation,
5% 4% 6% 5%
Logistics & Hospitality
Energy and Utilities 4% 3% 5% 4%
Healthcare 4% 5% 5% 6%
Other 2% 2% 2% 2%
Life Sciences 2% 1% 2% 2%
Media and Entertainment 1% 2% 1% 2%

SOURCE : DATA MONITOR


Space Race – Asia Forecast
CtrlS
New Space in Asia Data Centre Market – 2006-2010

SOURCE : BROADGROUP
Space Growth Rate - Asia
CtrlS
The Asian Data Centre market will increase by a compound annual growth
rate of 11.5% over the period from 2006 to 2010.
Expert Predictions
CtrlS
• India, by far the most exciting market in Asia
• ~ 2 million sft to be added in India by 2010
• India to overtake Japan in Data Centers circa
2011
• Asia would account for a quarter of world Data
Center business

• India would account for 3% of the Global market


• In terms of verticals, Indian market not very different
• BFSI, Manufacturing & Public Sector 3 most
important verticals
• Telecom, Retail, and Travel & Logistics the next 3
Most Discussed Future Trends
CtrlS
• Increasing power density
• Consequent cooling challenges
• And cable management
challenges
• Energy Efficiency
• Green Datacenters
• Chilled water in data centers
• Non-IT equipment more
expensive than IT equipment
Less Discussed Trends
CtrlS
• Continuous decrease in
bandwidth price
• 50 new Telcos coming up in
India
• Software as a Service
• Global integration of Indian
business
• Global relevance of India
Bandwidth
CtrlS
• As bandwidth prices fall to about
$150 - $200 per Mbps per month,
India becomes an attractive
destination for hosting.
– Today we are at $500 - $750 per Mbps
per month
– It was at $2000 - $2500 per Mbps per
month, three years back
– How long will this take? 2 years?
– Current US rates are about $100 per
Mbps per month
Monthly Total Cost, $ / Rack

10,000
9,000
8,000
7,000
6,000
Dollars

5,000
4,000
3,000
2,000
1,000
-
2007 2008 2009 2010 2011 2012

India - 10 kW USA - 10 kW
Monthly Total Cost, $ / Rack

4,000

3,500

3,000

2,500
Dollars

2,000

1,500

1,000

500

-
2007 2008 2009 2010 2011 2012

India - 3 kW USA - 3 kW
Bandwidth
CtrlS
• As bandwidth prices decrease, many
more applications and deployments
would make business sense within
India.
• Power will cost more than bandwidth

• On the demand side, broadband will


become ubiquitous, support a new
level of information intensity, driving
up the demand for content-heavy
applications
New Telcos
CtrlS
• With new Telco licenses, even after
consolidation,
– Effective competition would increase
– Demand for third party IDC space, ideal for
exchanges, would also increase
• Increased competition
– Reinforces the downward trend in bandwidth prices
– Telco domination of 3rd party IDCs would end
– Everybody would be forced to offer multiple carriers
SaaS
CtrlS
• SaaS would be firmly established due to
– Improved reliability of infrastructure and applications
– Better and cheaper connectivity
– Increased efforts against piracy, locks, and
unreasonably high prices
• Most of the future software products would
actually be a service
• SaaS providers requirement of IDCs would be
much higher
Globalisation
CtrlS
• Global integration of Indian businesses would continue apace
– Supply chains Would become more
– Distribution networks and customers global less local
– Competition
• Global benchmarks would be adopted
– For quality, systems, processes, best practices
• As a result, IT systems would be moved:
– From server rooms to IDCs (Ex: Public sector banks)
– From internal resources to specialists (Ex: Bharti, now Vodafone)
Global Relevance of India
CtrlS
• BRIC countries are the future giants: Goldman Sachs
• Trillion dollar economy: India would soon be in the top
ten economies of the world.
• Indian companies are acquiring companies abroad
• Practices, Systems, Infrastructure on par with the best in
the world
• India: Preferred global supplier of IT Services
Implications
CtrlS
• Falling bandwidth • Explosion of Data Centres
prices in India
• 5 or 10 times more than
• 50 new Telcos currently expected
• India would emerge as the
• Establishment of SaaS Data Centre and Disaster
Recovery capital of the
world
• Globalisation – Strong, stable democracy
– Rule of Law
• Growing Indian – Cost effective
Economy – High quality
– Abundant manpower
– Proven delivery model
Customer Requirements
CtrlS
• Think of a global customer, not an Indian customer
– 3 kW per rack x 24 kW / rack + √
– N + 1 Redundancy x N + N Redundancy √
– Critical load on UPS x Uninterrupted Cooling √
– 99.6% uptime SLA x 99.9% min. √
– IDC in office building x Purpose designed facility √
– Single power source x Two power sources √
– One bandwidth source x Two or more √
– 8 week set up time x Days, not weeks √
– Single Data Centre x Primary + Secondary (DR) √
• Requirements will go beyond the above
• Emerging Challenges will demand new solutions
Cooling Challenges
CtrlS
Higher Power Density
CtrlS
• Cooling as critical as • Uninterrupted cooling
power • Temperature rise
• Redundant cooling during generator start
time (20 s)
required
– 3 kW / rack: 1 c
o

• N + N, not N + 1 – 24 kW / rack: 30 oc
• In both outdoor and • Chilled water reservoir
indoor cooling units alone would not suffice
• UPS powered indoor units
required
Power Sources
CtrlS
• Customers will insist on 2 power sources
• Sub-optimal solution: In existing situation
– Dedicated power cable
– 2 Sub-stations of utility
– Each Connected to at least two different power plants
• Optimal Solution
– Set up a in-house power plant
– ITPL, Bangalore is already doing it!
Disaster Recovery
CtrlS
• DR Plan mandatory Action Plan
• Ctrical component: Secondary Data Centre or a
DR Data Centre
• Ideal Location
Nothing but the Ideal Location
CtrlS
• No Natural Disaster • No man-made Disaster
– Earthquake – War
– Floods – Civil war
– Cyclones – Terrorism
– Landslides – Fire
– Volcanic eruptions – Industrial Accidents
– Tsunami – Epidemics
– Tidal Waves – Strikes
– Hurricanes – Looting
– Tornadoes – Arson
– Wildfires – Transportation links breakdown
– Blizzards – Communications links disruption
Key Challenges
CtrlS
• N + N redundancy in cooling
• Uninterruptible Cooling
• 2 Sources of Power
• Critical examination of location
• And, more
Snapshot of the Future
CtrlS
• Nuclear proof Data Centre
• Measured in acres, not square feet
• Power plants, not DG sets
• Human-proof dark data centers
• Data Centres would not be Telco driven
• Data Centres would host Telco switches
• Infrastructure Management would be
a major practice of all Indian IT companies
• India: IDC and DR capital of the world
Snapshot of the Future
CtrlS
• Disaster Recovery Plans would be widespread
• All major companies would have a primary data centre backed by a
secondary data centre for Disaster Recovery
• Hyderabad and Bangalore would be the DR Locations of choice
• Detailed and tested Business Continuity Plans would be in place
Hyderabad – A Favorable DR Location
CtrlS
– No risk of
• Cyclones
• Storms
• Tidal Waves
• Tsunami
• Floods
• Volcanoes
• Etc.
– Rainfall
• Highest in 130 years is 254 mm in one
day
– Least prone to earthquakes in India
– Away from potential war zones
– Availability of skilled manpower
– Peaceful, law-abiding, cosmopolitan city
About Ctrl S
CtrlS
• Promoted by a 15 year
old group
• Group Investors include
major financial institutions
– Och-Ziff Capital, the world’s
5th largest fund with $31
billion of unleveraged funds
under management
– IDBI Bank, one of India’s
largest financial institutions
About Ctrl S
CtrlS
• Rolling out Tier IV Data Centres
across India
• Spread over 7 Lakh square feet
• Focused on Disaster Recovery
• DR and Business Continuity
seats in multiple locations
• Pilot operational in Hyderabad, India
About Ctrl S
CtrlS
• Current customers include
– A large $125 bn global Telco major
– A multinational manufacturing conglomerate
– A pan-Asia VPN service provider
– Manufacturing companies
– Content companies
CtrlS

Questions?